Kross Q2 revenue jumps +27.53% QoQ as margin improves
Revenue grew faster than expenses, while management highlighted trailer demand and capacity expansion across axle beams, casting and forging.
Filed 17 Oct 2026, 19:12 IST · after market close · Kross Ltd (KROSS)
Key takeaways
- Standalone revenue grew +27.53% QoQ as expenses rose +26.39%, lifting operating margin by 0.79 percentage points.
- Net profit increased +47.93% QoQ to Rs 19.69 cr despite a 1.64-percentage-point rise in the tax rate.
- Kross's 13.02% operating margin was 3.42 percentage points above the 9.6% median for 17 reported Consumer Discretionary peers.
Price around the results
Revenue growth accelerated in the standalone Q2
Standalone revenue rose +27.53% QoQ, while operating profit grew +35.70%, showing operating leverage in the quarter. Net profit increased +47.93% to Rs 19.69 cr, faster than profit before tax growth of +51.15% after the higher tax rate. Management said Q2 trailer volumes exceeded Q4 FY26 levels.
Lower expense growth supported the margin gain
Expenses grew +26.39%, slower than revenue growth of +27.53%, so operating margin widened by 0.79 percentage points to 13.02%. Interest expense rose +22.75% QoQ, adding pressure below operating profit, while the tax rate increased by 1.64 percentage points. Other income contributed 8.05% of profit before tax, making it a noticeable but not dominant part of earnings.
Axle-beam production began as capacity projects advanced
Management said commercial production of extruded axle beams began during the quarter, with utilisation at approximately 60-65%, and that current axle-beam capacity is 7,500 units per month. The company said its high-pressure moulding line is progressing towards doubling existing casting capacity, while forging expansion initiatives are on track. Management also said Q3 and Q4 M&HCV volumes are expected to be stronger than Q2 and that H2 has historically been 10-15% higher than H1.
Margin sits above peers, with no post-close reaction yet
Kross's 13.02% operating margin was 3.42 percentage points above the 9.6% median among 17 Consumer Discretionary peers that had reported the same quarter. The margin improved from 12.23% in Q1FY27, marking a sequential recovery after the first quarter. The results were filed after market close on 17 October 2026, so there is no market reaction to assess yet.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹235 cr | ₹184 cr | +27.53% |
| Other income | ₹2 cr | ₹0 cr | +456.41% |
| Expenses | ₹204 cr | ₹162 cr | +26.39% |
| Operating profit | ₹31 cr | ₹23 cr | +35.70% |
| Operating margin (%) | 13.02% | 12.23% | — |
| Interest | ₹3 cr | ₹2 cr | +22.75% |
| Depreciation | ₹3 cr | ₹3 cr | +7.31% |
| Profit before tax | ₹27 cr | ₹18 cr | +51.15% |
| Tax | ₹7 cr | ₹5 cr | +61.20% |
| Net profit | ₹20 cr | ₹13 cr | +47.93% |
| EPS (₹) | ₹3.08 | ₹2.06 | +49.51% |
Operating margin of 13.02% compares with a Consumer Discretionary sector median of 9.60% across 17 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Commercial production of extruded axle beams commenced during the quarter, with utilisation at approximately 60-65%.
- Trailer segment volumes in Q2 exceeded Q4 FY26 levels.
Guidance & outlook
- Q3 and Q4 M&HCV volumes are expected to be stronger than Q2, with H2 historically 10-15% higher than H1.
- Tractor and agri segment momentum is expected to continue into Q3.
- Kross expects to deliver healthy growth in FY27, supported by order books, demand and capacity expansion initiatives.
- Further tipping jack volume scale-up is expected in H2 FY27.
Expansion
- Current axle beam capacity is 7,500 units per month.
- The high-pressure moulding line is progressing as planned to double existing casting capacity.
- Forging capacity expansion initiatives are on track to support higher volumes and cost competitiveness.
New initiatives
- Kross is increasing robotic automation investment for forging and specialized machining facilities.
- The company is pursuing forward integration into cold drawn tube manufacturing.
- The extruded axle beam initiative is expected to deliver cost efficiencies and strengthen manufacturing capabilities.
- The seamless tube facility will enhance backward integration, reduce external dependency and lower production costs.
Competition
- Extruded axle beams offer lower material cost, lighter weight and superior technical performance resulting in improved tyre life.
Problems & risks
- The company faced input-cost pressures despite concluding price revisions with most OEM and Tier-1 customers.
What to watch
- Whether operating margin holds above 13.02% in the next quarter.
- Whether extruded axle-beam utilisation rises from approximately 60-65%.
- Whether interest expense growth moderates from +22.75% QoQ.